BPI and Unionbank end 2024 with sizable increase in profits

The Bank of the Philippine Islands (BPI) and Unionbank, led by Aboitiz, concluded 2024 on a high note, achieving double-digit growth in their full-year profits. BPI marked another successful year with record net income, witnessing a 20% increase to P62 billion in 2024. On the other hand, Unionbank experienced a surge in net income by 31% to P12 billion, driven by record revenues.

BPI reported that revenue growth helped offset higher operating expenses and provisions. In the fourth quarter of 2024, BPI saw a 23% increase in its topline to P170.1 billion year-on-year, primarily due to higher net interest income and a significant expansion of its asset base by 16.8%. Non-interest income also rose by 25.3% to P42.6 billion for the same quarter, with gains from various business segments like credit, wealth management, and bancassurance. BPI’s total loans stood at P2.3 trillion, with an 18.2% growth rate from the previous year.

Additionally, BPI’s institutional loans grew by 11.1%, while the business banking segment saw a substantial 41.7% increase in non-institutional loans. Personal loans also experienced significant growth of 92.1%. The bank maintained a strong financial position with a non-performing loans (NPL) ratio of 2.13% and an NPL coverage ratio of 106.2%. Its total equity reached P430.5 billion, with a Common Equity Tier 1 (CET 1) ratio of 13.8% and Capital Adequacy Ratio (CAR) of 14.5%, both surpassing regulatory requirements.

Unionbank achieved record net revenues of P79.5 billion in 2024, a 12.4% increase from the previous year. The bank’s net interest income rose to P58 billion as net interest margins widened to 6%. Notably, consumer loans accounted for 61% of Unionbank’s total loan portfolio following its acquisition of Citi’s consumer business. The chief financial officer of Unionbank, Manuel Lozano, attributed the bank’s growth to its retail-focused strategy and projected further improvements in net income due to synergies from integrated consumer operations.

BPI’s shares rose by 3.27% to P120 per share in Monday trade, while Unionbank’s shares climbed by 2.03% to P35.15 per share, underscoring investor confidence in both banks. The consistent growth and strong financial performance of these banks in 2024 are indicative of their resilience and strategic business decisions in navigating the ever-evolving banking landscape.